Strategy Implementation Challenges of Mobile Banking in Commercial Banks in Kenya

Abstract

The introduction of mobile money transfer services in Kenya had a great impact on the way in which Commercial Banks in Kenya conduct their day to day business. This state of affairs compelled the researcher to conduct this study on the strategy implementation challenges of mobile banking in commercial banks in Kenya. The data was collected from senior IT staffs of Commercial Banks in Kenya. The researcher used an interview guide to collect data from the respondents. The interview guide had different questions covering the demographic details of Commercial Banks IT, the general information on mobile money transfer services in the banking industry in Kenya and specific information covering the implementation challenges of mobile banking in commercial banks in Kenya. The findings of the study indicate that responses included improvement in IT management, thorough research on the customer needs and development of products to match such needs to achieve customer expectation and also attract new customers. The most talked about challenge was the customers’ literacy levels. The banks have also adopted a marketing system to reach its’ clients alongside the use of modern information and technology system. Based on the findings it may be recommended that commercial banks streamline transfer service charges and packaging of the mobile banking product to match the one charged by mobile service providers especially M-pesa so as to remain relevant in the sector.